THE EFFECT OF THE COOPERATIVE'S ROLE, MEMBER PARTICIPATION, AND BUSINESS INNOVATION ON CLIENTS' ECONOMIC WELL-BEING AT THE KAMON OFFICE COOPERATIVE, BERELIKU VILLAGE, MALAKA REGENCY, EAST NUSA TENGGARA PROVINCE

Abstract

This study aims to analyse the influence of the cooperative's role, member participation, and business innovation on clients' economic well-being at the Kamon Office Cooperative in Bereliku Village, Malaka Regency, East Nusa Tenggara Province. The research employed an exploratory quantitative design, with a population comprising all 110 active members of the Kamon Office Cooperative. A saturated sampling (census) technique was used, in which the entire population served as the sample, while data were collected through a structured online questionnaire distributed via Google Forms. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4 software. The structural model results indicate that the cooperative's role has a positive but non-significant effect on clients' economic well-being (β = 0.160, t = 1.436, p = 0.151). Member participation likewise shows a positive but non-significant effect on clients' economic well-being (β = 0.119, t = 1.345, p = 0.179). In contrast, business innovation exerts a positive and significant effect on clients' economic well-being (β = 0.649, t = 4.933, p = 0.000). The R-square value indicates that 75.8% of the variance in clients' economic well-being is explained jointly by the three independent variables, while the remaining 24.2% is explained by variables outside the model. These findings demonstrate that business innovation is the most dominant driver of improved economic well-being among clients of the Kamon Office Cooperative, underscoring the need for cooperatives to modernise their services and operational systems alongside strengthening their institutional role and member participation.